Name: It's Official: The Government Is Bailing Out The Stock Market (Again)
Uploaded: 2026-03-05T18:03:22.000Z
Duration: 12 min 19 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Adverbs of degree

The US government just bailed out OpenAI because OpenAI is running out of money.

It seems like we're at the final stage of the AI bubble, and

the AI bubble is about to completely collapse.

And since OpenAI is literally the face of AI industry, if OpenAI is struggling financially, then what do you think is happening to the rest of the industry?

I kind of think of ads as like a last resort for us, for a business model.

I would do it if it meant that was the only way to get everybody on the world, in the world, like access to great services.

But if we can find something that doesn't do that, I'd prefer that.

He literally said last year that ads are going to be the last resort.

And if we are going to introduce them, that means that we're completely desperate.

OpenAI has already started testing ads, but

most importantly, they even started introducing adult content, like how desperate you have to be to do something like that.

The second part of the problem is that they have just signed a deal with the US Government after the United States has ditched Anthropic, because they know that this is how they ensure that the US Government is going to bail them out some level when something gets sufficiently huge, whether or not they are on paper, the federal government is kind of the insurer of last resort, as we've seen in various financial crises and insurance companies screwing things up.

So I guess given the magnitude of what I expect AI economic impact to look like, sort of, I do think the government ends up as like the insurer of last resort.

Sam Altman knew since the beginning that this is turning into a bubble.

And just like the US government has bailed out the US banking and the insurance industry, the US government will be bailing out the entire AI industry.

Now, in early 2000, the US government has loosened regulations for people to get mortgages.

They know that this can turn into a bubble.

So before selling a mortgage or for every mortgage that they have sold, they have insured it.

Insurance companies were confident that house prices are never going to collapse.

So they basically sold that insurance for every single mortgage.

Worst case scenario, that house will be sold even at a small loss.

But that is not going to lead to a catastrophic crash in housing prices.

They began loaning and giving mortgages to whoever wanted a mortgage.

People started buying one house, second house, third house, fourth house.

At some points, people have purchased houses that they cannot possibly afford and they began defaulting.

Now, the banking sector didn't care much because they knew that every single mortgage is being insured.

So when house prices began collapsing, the banking sector went to the insurance companies and told them, we have purchased insurances and now you have to pay us.

But then insurance companies realized that we have sold far more insurances than we can possibly afford, which is why the entire insurance industry went down.

And then that burden was on the shoulders of the banking industry and they knew that they don't have enough money to bail themselves out, which is why the housing bubble turned into a banking crisis.

Now, that happened because the entire market has spent so much money on houses that house prices were inflated more than they worth.

Now, it doesn't mean that house prices will never rise to that point, but

when you spend so much money on a single asset and you create artificial demand, there is going to be a spike in prices in the short run, but

because investors want a return on their money.

And if you are an early investor and you realize that now the price of your investment has doubled or tripled in such a short period of time, you start pulling off and that means that prices will start crashing, taking down the entire market.

So the US government had to step in and bail out the entire insurance industry and the entire banking sector.

Now, Sam Altman is basically comparing the AI bubble to the housing bubble and saying that we, well, if the US government bailed out the housing market, why can't the government bail out the entire AI industry?

And it seems like that is exactly what is happening.

You see, AI or ChatGPT in particular, has a huge problem.

For every dollar of revenue that they are earning, they're spending about 7.$7.

So by looking at this, you can already see that the math is not adding up.

The question is that when exactly the company is going to break even?

It might be three years from now, five years from now, 10 years from now.

Now, last year they made almost $20 billion, but they spent far more than that.

And according to every estimate that we have, most likely OpenAI, in the best case scenario, is going to break even by 2029, maybe 2030.

And if investors start pulling out, then all those hundreds of billions of dollars in investments will pop like a bubble and it could take down the entire market.

the vast majority of people who are using OpenAI are not actually paying anything.

And that's why, despite so many users of ChatGPT.

ChatGPT is not making money or whatsoever.

And if they turn the entire model into a subscription, then people are simply going to start using alternative services.

And that might be the end of ChatGPT, which is why the company is forced to offer these services completely for free, even though that they're losing massive amounts of money.

The only companies that can afford that are companies such as Google.

Google last year made over $400 billion in revenue and over $100 billion in profit.

So they can keep burning money, dominating and monopolizing the entire AI industry.

But ChatGPT on the other side, has no other option.

But there is a problem with that $110 billion investment deal.

Now, first of all, $50 billion of that is going to come from Amazon.

And Amazon is not going to give them $50 billion directly, but

rather $15 billion is going to be upfront.

And the other $35 billion, there are going to be contingencies.

That means that when OpenAI is going to hit certain milestones, then they are going to get the money from Amazon.

And one of the contingencies is that OpenAI should go public.

Now, going public is extremely dangerous.

That's because now you cannot be like a private company.

Now you have to share your financial statements.

Now you have to share your data with the rest of the public.

And if you're not going to hit your revenue targets, Wall street and investors will start massively dumping up your stock and your stock will be obliterated.

So if you're not going to receive or achieve the milestones, you're not going to get $35 billion from Amazon.

Part of the deal is that OpenAI should spend $100 billion buying computer powers from Amazon Web Services.

So Amazon is like spending $50 billion investing in OpenAI and taking a share in the business.

And OpenAI has to spend $100 billion buying computer power from Amazon.

It seems like a deal that you're only going to sign unless you're desperate.

Another $30 billion is coming from Nvidia.

And that is also a really great deal for Nvidia, because there is also a contingency that most of that money will be spent buying computer chips from Nvidia.

So basically, Nvidia is going to give OpenAI $30 billion so that OpenAI will use that money buying computer chips from Nvidia a really great deal for Nvidia if you ask me, it is going to increase the revenues for the company, driving higher their valuations.

And because there is so much demand for Nvidia computer chips, they are going to pay huge margins on them.

And finally, the last $30 billion is going to come from SoftBank.

And that will probably make SoftBank the largest single investor in OpenAI by owning 13% of the company.

And because they are so desperate, they made a deal with the devil with the Department of War, with the US Government.

Now, Antropic was basically the company that was supplying the Department of War with AI services.

But there was a huge problem between the Department of War and Antropic because the Department of War basically asked Antropic to use AI services to mass domestically survey the entire United States.

And that means that your data will be used to survey you.

The US Government is going to use the entire AI models to basically survey the entire country.

But Anthropic said, no, that is not going to happen.

The second thing that Department of War has asked is to use AI for fully autonomous weapons.

And the CEO of Anthropic is like, listen, AI is great, but it is not 100% accurate.

Subtitles ListPlay Video

It's Official: The Government Is Bailing Out The Stock Market (Again)

literally

entire

scenario

opportunity